Help me budget to work out how I can pay off overdraft?!?
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Qwerty5
Posts: 6 Forumite
Hi,
So for several years now I have been living in my overdraft. I just cannot work out a way to pay this off along with living expenses I have now started a better paying job so feel I could be in a better position to.
Monthly pay: £2200
Expenses-
Rent: 625
Internet:
£15
Phone bill: £48
Contacts : £30
Council tax £ 70
Water and bills unsure as yet as only just moved to a new flat. Lets put aside £200 for that any any extras
Food : around £150 whole month usually
Train fares: £130
I do tend to drink and go out most weekends so the amount spent out can vary.
Could people I guess try and recommend how they would try to pay off the £2000? I just keep going round in circles never able to pay it back
So for several years now I have been living in my overdraft. I just cannot work out a way to pay this off along with living expenses I have now started a better paying job so feel I could be in a better position to.
Monthly pay: £2200
Expenses-
Rent: 625
Internet:
£15
Phone bill: £48
Contacts : £30
Council tax £ 70
Water and bills unsure as yet as only just moved to a new flat. Lets put aside £200 for that any any extras
Food : around £150 whole month usually
Train fares: £130
I do tend to drink and go out most weekends so the amount spent out can vary.
Could people I guess try and recommend how they would try to pay off the £2000? I just keep going round in circles never able to pay it back
0
Comments
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Looking at what you have written you have £1132 left over each month so where does it go ?
There are several things missing off your list of expenditures and they all add up so you need to accurately (or as possible as) get all your expenses on the list.
But the main thing is cut down spending at weekends - you don't give a figure so I am guessing you know its very high. Try going out just 1 night each weekend and you should clear it quicklyTotally Debt Free & Mortgage Free Semi retired and happy0 -
Hi,
So for several years now I have been living in my overdraft. I just cannot work out a way to pay this off along with living expenses I have now started a better paying job so feel I could be in a better position to.
Monthly pay: £2200
Expenses-
Rent: 625
Internet:
£15
Phone bill: £48
Contacts : £30
Council tax £ 70
Water and bills unsure as yet as only just moved to a new flat. Lets put aside £200 for that any any extras
Food : around £150 whole month usually
Train fares: £130
I do tend to drink and go out most weekends so the amount spent out can vary.
Could people I guess try and recommend how they would try to pay off the £2000? I just keep going round in circles never able to pay it back
There's a lot missing from your budget such as entertainment which seems like it could be a whopper.
Here's the statement of affairs calculator you can use that is more comprehensive that your list above.
https://www.lemonfool.co.uk/financecalculators/soa.php
It does seem as if you don't know where a lot of your money is going if you have £2,200 coming in every month, can only account for £1,268 and are living in your overdraft. Start keeping a spending diary to work out where every penny is going because if you can track down that missing £932 and trim some of the fat from it you will be out of your overdraft in no time.0 -
Your situation is very easy sorted. Your gonna have to say no to nights out. It requires discipline but little else. Some people on here have to put life on hold and get second jobs etc.
If your spending in excess of £250 a weekend your must be going out more than 1 night so reduce that. Christmas is probably the worst time to reduce the party scene but if you dont nip it in the bud now (I am assuming your quite young if your out every weekend) your going to be in your 40s looking back still in rented accommodation and with more debt.0 -
Go through all of your receipts or bank statements for the last three months.
Get a piece of paper or spreadhseet going and list all the things you spent money on.
Have separate lines for each thing, so, food, food out, takeaways, pub, pub lunch, coffees, rent, bills etc.
Once you've done that [ and you have the weekend coming up to do it] you'll easily see where you have been spending money and you'll know where your excess cash is going.
That should be more of a wake up than anything we can say to you. Also, try multiplying all those category totals by 12 to see what you're paying each year on things.
When you've done that, come back again.Shampoo? No thanks, I'll have real poo...0 -
Stay at home for two months and your overdraft will be paid.0
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Sounds like you need to be a lot more disciplined about where your money goes. As others have said there is £932 which is unaccounted for and your soa is incomplete. Presumably no car or other debts other than the overdraft? Entertainment sounds quite high too if you go out drinking most weekends.
The only way you will reduce the debt is to stop spending so much and make repaying it a priority. Drop the limit each month so you are not tempted to go up to £2k.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
Stay at home for two months and your overdraft will be paid.
This fixes the problem in the short term but not the cause.
OP doesn't go out for 2 months, pays off overdraft.
Driven to distraction by two months of staring at the walls, as son as the OD is gone OP returns to their previous socialising habits "plus some".
Six months later - the overdraft is back, probably worse than before.
It's like a going on a diet - it'll sort things out in the very short term, but before you know it you're back at WW or SW heavier than you were the last time - plans like this come with an "end point" after which there is no incentive to continue with the behaviour, and also don't teach good habits.
This is the reason we tell people to put together an SOA and start budgeting properly - that way you start to make your money work for you, and learn to account for each and every penny.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
You either need to earn more money, or stop spending as much money. Try not going out every weekend until the debts have been paid off, which will help in the short term.
Go through your budget extremely carefully so that every expense is planned for, you have somethng going into your savings, and have an entertainment budget for going out.0
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